Your name will still be on the lease at your current residence so it will be pretty easy to prove that you aren't truly occupying the new multi-family.

I would also point out that you did not give enough of your current status as to strategy, risk tolerance, age, income currently, etc. etc. etc.There are different options available for a private residence.

In this space, most of the "advisory" firms are enhancing upon the services of a custodian held account by forming a legal entity that puts you directly in control of the funds such as the Checkbook IRA LLC format or Solo 401(k) trust. 

I currently own one rental property in the Seattle area (formerly my primary residence).

He will begin his dental residency this summer.

I was a long-time GTA resident before moving to Calgary (and now Dallas).

I understand we have to live in it as a primary residence for at least one year but are there limitations with actually living in the home?

They weighted in three major categories:Emotional and physical well beingIncome and employmentCommunity and environmentI think these lists have value as cities try to attract businesses and residents.

(especially the amount down and interest rate advantage of it being a personal residence)B) Could the current market rent for the home in South Pasadena cover them renting a better place while still cash flowing and allowing you to make better investments with the equity you could pull from the house?

Are you speaking in terms of a live in flip or just a conventional loan product on a primary residence?